Chicken Soup for the Soul Entertainment Announces Pricing of $10.8 Million Underwritten Public Offering of Common Stock
March 31 2023 - 7:45AM
Business Wire
Chicken Soup for the Soul Entertainment Inc. (Nasdaq: CSSE) (the
“Company”), one of the largest providers of premium content to
value-conscious consumers, today announced the pricing of its
previously announced underwritten public offering. The Company is
offering an aggregate of 4,688,015 shares of its Class A common
stock at an offering price of $2.30 per share, inclusive of
1,643,015 shares purchased by Chicken Soup for the Soul, LLC, the
Company’s parent. The offering is also being made to new and
existing institutional investors, and select participants from the
Company’s board and management, including the CEO.
Craig-Hallum Capital Group is acting as sole managing
underwriter for the offering.
The Company expects to receive aggregate gross proceeds from the
offering of approximately $10.8 million, before deducting
underwriting discounts and commissions and other offering-related
expenses payable by the Company, and application of approximately
$3.8 million for certain payments due under its management and
license agreements with Chicken Soup for the Soul, LLC, as
described in the prospectus supplement. No underwriter discount
applies to the shares being purchased by Chicken Soup for the Soul,
LLC. The Company intends to use the net proceeds received from this
offering for working capital and general corporate purposes,
including the payment of certain obligations as described in the
final prospectus supplement to be filed with the Securities and
Exchange Commission (the “SEC”).
The offering is expected to close on or about April 3, 2023,
subject to the satisfaction of customary closing conditions.
This offering is being made pursuant to a shelf registration
statement filed with the SEC on June 14, 2021, and declared
effective on June 24, 2021. A final prospectus supplement and
accompanying prospectus relating to the offering will be filed with
the SEC and will be available on the SEC's website at www.sec.gov.
Copies of the final prospectus supplement and accompanying
prospectus relating to the offering, when available, may also be
obtained by contacting Craig-Hallum Capital Group LLC, Attention:
Equity Capital Markets, 222 South 9th Street, Suite 350,
Minneapolis, Minnesota 55402, by telephone at (612) 334-6300, or by
email at prospectus@chlm.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction.
About Chicken Soup for the Soul Entertainment
Chicken Soup for the Soul Entertainment (Nasdaq: CSSE) provides
premium content to value-conscious consumers. The company is one of
the largest advertising-supported video-on-demand (AVOD) companies
in the US, with three flagship AVOD streaming services: Redbox,
Crackle, and Chicken Soup for the Soul. In addition, the company
operates Redbox Free Live TV, a free ad-supported streaming
television service (FAST), with over 160 channels as well as a
transaction video on demand (TVOD) service, and a network of
approximately 34,000 kiosks across the US for DVD rentals. In order
to provide original and exclusive content to its viewers, the
Company creates, acquires, and distributes films and TV series
through its Screen Media and Chicken Soup for the Soul TV Group
subsidiaries. Chicken Soup for the Soul Entertainment is a
subsidiary of Chicken Soup for the Soul, LLC, which publishes the
famous books series and produces super-premium pet food under the
Chicken Soup for the Soul brand name.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements are statements that are not historical facts and
include, without limitation, statements regarding the public
offering and intended use of proceeds from the offering. There can
be no assurance that the Company will be able to complete the
public offering on the anticipated terms, or at all, including the
satisfaction of customary closing conditions. For a more complete
description of these and other risks and uncertainties, please
refer to Item 1A (Risk Factors) on the Company’s Annual Report on
Form 10-K for the year ended December 31, 2021, filed with the SEC
on March 31, 2022, Item 1A (Risk Factors) in the Company’s
Quarterly Report on Form 10-Q for the three and nine-month period
ended September 30, 2022, filed with the SEC on November 14, 2022
and the Company’s other filings with the SEC. If any of these risks
materialize or our assumptions prove incorrect, actual results
could differ materially from the results implied by the
forward-looking statements contained in this press release.
Forward-looking statements are made as of the date of this release,
and, except as required by law, the Company does not undertake an
obligation to update its forward-looking statements to reflect
future events or circumstances.
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(INVESTOR RELATIONS) Zaia Lawandow Chicken Soup for the Soul
Entertainment zlawandow@chickensoupforthesoul.com
(PRESS) Peter Binazeski Chicken Soup for the Soul Entertainment
pbinazeski@chickensoupforthesoul.com
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